Bitcoin's greatest value is in the world's least stable economies

At the Bitcoin London conference in early July, Icelandic angel investor and virtual currency expert Sveinn Valfells proffered a radical suggestion: Iceland should adopt bitcoin as its national currency . He may be in the minority, but his view is rooted in generations of experience suggesting that the Icelandic government is ill-equipped to manage its national currency. In the 1970s and 1980s, Vallfells’ father arrived at a similar conclusion amid double- and triple-digit national inflation rates. Valfells, Sr. chose to take action by creating an alternative currency in the form of vouchers denominated in cubic meters of concrete. The vouchers, which were handed out to construction employees on payday, were eventually accepted by the federal government as payment for taxes and helped many citizens weather the otherwise brutal economic period. Valfells is hoping that bitco...